EDS New Zealand today said it had received a $1.5 million grant from Investment New Zealand which would support the creation of 360 new EDS jobs.
The company said the grant would support EDS' continued expansion of its contact centre and applications services global network.
Most of the call centre jobs would be in Auckland while most of the applications services work would be in Wellington. The majority of the jobs would be in Auckland.
This move would boost EDS' Business Process Outsourcing (BPO) capability, the company, a unit of Texas-based Electronic Data Systems, said.
The grant would be matched by an EDS investment of $18 million and is expected to create an estimated $200-280 million in foreign exchange earnings and $140-200 million in direct domestic benefit over the next eight years.
BPO is one of the fastest growing segments in the IT services industry.
Services include customer relationship management, financial process management, administrative process management and enterprise shared services, such as human resources, financial and accounting, and procurement.
EDS New Zealand's managing director Rick Ellis said the government grant would strongly aid New Zealand as it competed in the global market for offshore business under the EDS Best ShoreSM initiative.
The investment would provide New Zealand with access to an unmatched global infrastructure and market leadership position, Mr Ellis said.
"We're delighted Investment New Zealand has supported us in this effort."
Mr Ellis said EDS New Zealand's selection as an EDS Best ShoreSM location designated it as a high-quality, cost competitive country for EDS' global call centre and applications development work.
"The potential for employment we can create through EDS Best ShoreSM in the contact centre and applications development market is what facilitated this grant," he said.
"New Zealand's stable political environment, growing economy, competitive cost structures and flexible and skilled IT workforce, make it an ideal location for the EDS Best ShoreSM programme."
Minister of Economic Development Jim Anderton said that supporting EDS would deliver great return on investment for New Zealand.
"The Government is committed to economic growth and development, innovation and job creation in New Zealand for New Zealanders. This agreement delivers on all of those fronts," he said.
Investment NZ chief executive Don Christiansen recognised the forecasted economic implications this initiative would produce through employment and export opportunities.
There were additional advantages that New Zealand businesses could explore with EDS' global clients that choose to have their contact centres and applications work undertaken by EDS, such as introducing this offshore client base to the government, he said.
In addition to the Investment NZ economic grant, the agreement extends to EDS working with Work and Income New Zealand and the Tertiary Education Commission to recruit and train skilled candidates for the new jobs.
EDS New Zealand is already the country's largest IT service and solutions provider in New Zealand.
EDS is the world's No 2 computer services and consulting company behind IBM. Its fourth quarter earnings fell to US$360 million ($651 million) from US$405 million a year earlier. In 2002, the company made a US$1.12 billion profit.
EDS was founded in the United States by former billionaire, right-wing independent US presidential candidate Ross Perot. He sold the company to General Motors in 1984.
EDS reported revenues of US$21.5 billion in 2002. The company's stock is traded on the New York Stock Exchange and the London Stock Exchange.
Mr Anderton said EDS would have to refund the Government grant if it did not meet its targets.
Failure to create 200 jobs meant all the money would be refunded but, after that, any refund would be on a pro rata basis.
EDS already employed 2300 people in New Zealand and that operation would continue.
"There was no suggestion at any time, by EDS, that if this did not proceed or the Government did not assist that there would be any dimunition of EDS here," Mr Anderton said.
- NZPA
EDS says $1.5m investment NZ grant will create jobs
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